You are here: Home - Investing - Experienced Investor - News -

UK growth bounces back in first quarter

0
Written by: Danielle Levy
10/05/2019
The UK economy proved resilient in the face of Brexit uncertainty during the first quarter of 2019.

UK economic totalled 0.5% during the first quarter of 2019, according to the latest figures from the Office for National Statistics (ONS). This represents an increase from 0.2% recorded in the fourth quarter.

The economy was buoyed by the services sector, which exhibited the strongest growth during the three-month period.

The UK’s manufacturing sector also positively surprised, growing at its fastest rate since 1988. However, the ONS pointed out that this may be down to manufacturers facing increased demand to fulfil orders before the original Brexit deadline in late March.

In spite of the Brexit uncertainty, which continues to loom, business investment increased during the first quarter.

EU weakness bites

Phil Smeaton, chief investment officer at Sanlam, pointed to the irony that economic weakness in the European Union (EU), driven by declining industrial activity in Italy and Germany, may be acting as a drag on UK growth.

“As global trade disputes rumble on it would seem that any hopes of stronger EU growth lie with domestic activity, which would provide a welcome boost for the UK,” he added.

Smeaton was also encouraged to see that jobs are still being created and wage growth remains strong within the UK.

Ian Forrest, investment research analyst at The Share Centre, added: “While it is good to see the economy growing despite all the uncertainty around at present the market is still conscious of the hawkish comments made by the Bank of England’s Monetary Policy Committee at its latest meeting when Mark Carney said he expected interest rates to rise more than the markets were anticipating.”

At 11:35, the FTSE 100 index was up 0.45% at 7,240 points.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Half of over-55s support their children & parents financially

Brits over the age of 55 are feeling the financial strain of supporting their children, grandchildren and ageing parents.

Close